Are closing entries necessary for permanent accounts only?

Closing entries are not necessary for permanent accounts; they are primarily used for temporary accounts. Temporary accounts, such as revenues and expenses, are closed at the end of an accounting period to reset their balances to zero for the next period. Permanent accounts, which include assets, liabilities, and equity, carry their balances forward and do not require closing entries. Thus, closing entries help prepare the accounting records for the next period by clearing temporary accounts.